Michael's Furniture Store buys a bed frame at a wholesale price of $103.00. If the markup rate at Michael's Furniture Store is 75%, what is the total markup for the bed frame in dollars?
Solution: Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. The amount of markup can be found with the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $75\%$ is equivalent to $\frac{75}{100}$ which is also equal to $75 \div 100$ $75 \div 100 = 0.75$ Now you have all the information you need to use the formula above! $0.75$ $\times$ $$103.00$ $=$ $$77.25$ The amount of markup on the bed frame is $$77.25$.